Anyone interested in Heritage Financial Corporation (NASDAQ:HFWA) should probably be aware that the Executive Chairman, Brian Vance, recently divested US$107k worth of shares in the company, at an average price of US$23.79 each. On the bright side, that sale was only 3.5% of their holding, so we doubt it's very meaningful, on its own.
Heritage Financial Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the insider, David Spurling, sold US$238k worth of shares at a price of US$27.43 per share. So what is clear is that an insider saw fit to sell at around the current price of US$24.13. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
Over the last year, we can see that insiders have bought 11.72k shares worth US$223k. But insiders sold 15.48k shares worth US$408k. All up, insiders sold more shares in Heritage Financial than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Does Heritage Financial Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Heritage Financial insiders own 1.7% of the company, worth about US$15m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Heritage Financial Insider Transactions Indicate?
An insider sold stock recently, but they haven't been buying. Despite some insider buying, the longer term picture doesn't make us feel much more positive. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Heritage Financial. Case in point: We've spotted 3 warning signs for Heritage Financial you should be aware of.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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